Source link : https://tech365.info/california-refineries-shut-as-gasoline-demand-slips-into-everlasting-decline-cleantechnica/
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California’s refinery sector is contracting, and the explanations will not be as difficult as operators typically recommend. When refinery homeowners announce closures, they often level to the burden of environmental rules, the prices of compliance, or fines from state businesses. These elements are actual, however they aren’t decisive. The extra basic driver is demand. Gasoline consumption in California has been declining for almost a decade. That development alone reshapes the economics of refining, eroding margins and making long-term reinvestment in amenities unappealing. The closures we’re seeing now are much less about regulators pushing corporations out and extra concerning the market pulling the ground out from below them.
Two main refineries in California have introduced plans to shut, and collectively they account for a major share of the state’s gasoline provide. Phillips 66’s Wilmington refinery in Los Angeles, with a capability of about 139,000 barrels per day, and Valero’s Benicia refinery within the Bay Space, with about 145,000 barrels per day of capability, are each slated to wind down operations within the subsequent two years. Refineries sometimes produce about 45% to 50% of their output as gasoline, which implies these two amenities collectively present within the vary of two billion gallons yearly. With California’s whole gasoline consumption at about 13.4 billion…
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Author : tech365
Publish date : 2025-09-14 21:01:00
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